Lived Climate Pollutants from APG-Flaring
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MITIGATION OF SHORT- PHASE 2: THE USE OF NEW LIVED CLIMATE METHODOLOGY TO REDUCE APG FLARING AT POLLUTANTS FROM REMOTE FIELDS APG-FLARING REPORT 2021 Mitigation of Short-Lived Climate Pollutants from APG-Flaring © Arctic Contaminants Action Program, 2021 This document is available as an electronic document from the Arctic Council’s open access repository: oaarchive.arctic-council.org This document is licensed under the Creative Commons Attribution-Non- Commercial 4.0 International License. To view a copy of the license, visit http://creativecommons.org/licenses/by-nc/4.0 Suggested Citation ACAP 2021, Mitigation of Short-Lived Climate Pollutants from APG-Flaring Project: Phase 2 - The Use of New Methodology to Reduce APG Flaring at Re- mote Fields. Arctic Contaminants Action Program (ACAP). 92 pp. Author VYGON Consulting Published by Arctic Council Secretariat Cover photograph iStock / lanolan Funding and support The Report was financed by the Arctic Council’s Project Support Instru- ment, which is managed by NEFCO. TABLE OF CONTENTS TABLE OF CONTENTS ........................................................................................................................... 1 DEFINITIONS AND ABBREVIATIONS ................................................................................................... 2 INTRODUCTION .................................................................................................................................. 12 EXECUTIVE SUMMARY ........................................................................................................................ 13 RESULTS OF THE ANALYSIS OF TECHNOLOGICAL AND ECONOMIC EFFECT OF IMPLEMENTATION OF THE NOVOPORTOVSKOYE INVESTMENT PROJECT STAGE II .................. 15 ANALYSIS OF THE CURRENT REGULATORY SYSTEM TO ENCOURAGE THE REDUCTION OF SOOT AND METHANE EMISSIONS, INCLUDING EMISSIONS FROM APG FLARING ..................... 25 ASSESSMENT OF APG REINJECTION TECHNOLOGY SCALING/COMMERCIALIZATION POTENTIAL IN THE RUSSIAN ARCTIC ZONE ..................................................................................... 60 LIST OF COMPANIES FOR PROVIDING DECISIONS ON ADDITIONAL INVESTMENTS IN PROJECTS AIMED AT SOOT AND METHANE EMISSIONS REDUCTION ......................................... 73 DISSEMINATION OF RESULTS ........................................................................................................... 77 CONCLUSION ...................................................................................................................................... 78 APPENDIX A. CALCULATION OF ECONOMIC EFFICIENCY OF APG INJECTION ............................ 79 APPENDIX B. DETAILS AND SUMMARY ON VARIOUS APG UTILIZATION TECHNOLOGIES ........ 81 APPENDIX C. COMPARISON OF APG UTILIZATION TECHNOLOGIES BY THEIR ENVIRONMENTAL AND ECONOMIC EFFICIENCY FOR THE NOVOPORTOVSKOYE FIELD ........................................... 85 APPENDIX D. MACROECONOMIC SCENARIO .................................................................................. 86 APPENDIX E. EMISSIONS FACTORS FOR APG UTILIZATION UNITS ............................................... 86 APPENDIX F. GEOPHYSICAL PROPERTIES OF TARGET ASSETS ...................................................... 87 APPENDIX G. BASELINE EMISSIONS LEVEL ...................................................................................... 88 1 | MITIGATION OF SHORT-LIVED CLIMATE POLLUTANTS FROM APG-FLARING DEFINITIONS AND ABBREVIATIONS Term used Definition ACAP Arctic Council’s Arctic Contaminants Action Programme ACAP EG ACAP Expert Group ACAP WG ACAP Working Group Adsorbable organi- Adsorbable organically bound halogens, expressed as Cl, include cally bound halo- adsorbable organically bound chlorine, bromine and iodine. gens (AOX) AEP Alberta Environment and Parks AER Alberta Energy Regulator AOGCC Alaska Oil and Gas Conservation Commission APG Production Covers gas dissolved within the oil and the gas-cap gas (gas resid- ing above oil in a reservoir) producing through oil wells. This gas includes flared, vented and fugitive gases released in continuous and intermittent volumes from routine operations, emergency conditions, and the depressurisation of pipeline, compression and processing systems etc. As the APG comes out of solution it is usually separated before oil enters the pipeline. The amount and composition of APG vary depending on the oil reservoir, extraction technology used, degree of depletion of the reservoir, and other factors. APG is typically mixed with ethane, butane and propane, other organic compounds, water, carbon di- oxide, hydrogen sulphide, and other impurities, such as heavy metals (e.g. Hg, As). After extraction, the mixture is processed at a Gas Processing Plant (GPP), which separates out liquids and impu- rities and delivers pure, dry gas (methane) to a pipeline. The liq- uids or condensate can be sold, processed into liquid petroleum gas (e.g. used for cooking, heating, fuel), or further processed into more expensive petrochemical feedstocks. Even reusing APG at the well site, e.g. for reinjection or power generation, usually requires processing to remove corrosive ele- ments and create a uniform mixture, in addition to compression to a required pressure. 2 | MITIGATION OF SHORT-LIVED CLIMATE POLLUTANTS FROM APG-FLARING Term used Definition Arctic Zone of the The Russian Arctic Zone is the territory as established by the Pres- Russian Federation idential Decree №287 dated 27 June 2017. (“Russian Arctic Zone) Arsenic (As) Expressed as As, includes all inorganic and organic Arsenic com- pounds, dissolved or bound to particles. Asset An “asset or operation,” is a logical business or operating unit (e.g., individual processing plants, gathering facilities, or offshore platforms; producing basins; regional assets; LNG operations). An operation/asset unit is to be defined such that all components of the unit are participating in the program (e.g., if several gas plants within a country are listed as one operation/asset, then a single emission survey should address all of the gas plants). The same operation/asset unit organisation shall be used for conducting the emission survey, the opportunity evaluation and describing re- sults in the final report(s). For convenience, the term “assets” will be used to refer to “operations/assets” throughout this assign- ment Associated Petro- Associated gas, also known as associated petroleum gas (abbrevi- leum Gas (APG) ated as APG) is gas that associated with the oil in a reservoir. Associated Petro- All applications of using APG including delivery to gas processing leum Gas utilization plants/customers, power generation, gas reinjection and so on. B Billion Barrel of Oil Equiva- A barrel of oil equivalent (BOE) is the amount of energy that is lent (BOE) equivalent to the amount of energy found in a barrel of crude oil BAT-BEP Best Available Techniques and Best Environmental Practices bbl Barrel of oil bcm Billion cubic meters BEIS The Department for Business, Energy and Industrial Strategy (UK) Biochemical oxygen Amount of oxygen needed for the biochemical oxidation of the or- demand (BOD5) ganic matter to carbon dioxide in 5 days. BOD is an indicator for the mass concentration of biodegradable organic compounds. 3 | MITIGATION OF SHORT-LIVED CLIMATE POLLUTANTS FROM APG-FLARING Term used Definition Black Carbon (BC) A form of air pollution produced from incomplete combustion of fossil fuels, burning of biomass and cooking with solid fuels. Black carbon consists of pure carbon in several linked forms BLM Bureau of Land Management (US) bpd Barrels per day CO2eq Carbon dioxide equivalent stands for a unit based on the global warming potential (GWP) of different greenhouse gases. CAA Clean Air Act (US) Cadmium (Cd) Expressed as Cd, includes all inorganic and organic Cadmium compounds, dissolved or bound to particles. Chemical oxygen de- Amount of oxygen needed for the total oxidation of the organic mand (COD) matter to carbon dioxide. COD is an indicator for the mass con- centration of organic compounds. Chromium (Cr) Expressed as Cr, includes all inorganic and organic chromium compounds, dissolved or bound to particles. cm Volume in cubic meter, m3 cm per t of… Volume in cubic meter per metric ton of… CNG Compression of Dry Gas CODAP Crude Oil Delivery and Acceptance Point Combustion unit Unit burning refinery fuels alone or with other fuels for the pro- duction of energy at the refinery site, such as boilers (except CO boilers), furnaces, and gas turbines. Continuous meas- Measurement using an 'automated measuring system' (AMS) or a urement 'continuous emission monitoring system’ (CEMS) permanently in- stalled on site. Copper (Cu) Expressed as Cu, includes all inorganic and organic Copper com- pounds, dissolved or bound to particles. CPF Central Processing Facility CPRA Canada Petroleum Resources Act 4 | MITIGATION OF SHORT-LIVED CLIMATE POLLUTANTS FROM APG-FLARING Term used Definition Diffuse VOC emis- Non-channelled VOC emissions that are not released via specific sion emission points such as stacks. They can result from 'area' sources (e.g. tanks) or 'point' sources (e.g. pipe flanges). EIA Environmental Impact Assessment EPA The US Environmental Protection Agency EU European Union EU ETS EU Emissions Trading System Existing unit/plant A unit/plant, which is not a new unit /plant. FCC unit Fluid catalytic cracking (FCC): A conversion process for upgrading heavy hydrocarbons, using heat and a catalyst to break larger hy- drocarbon molecules into lighter molecules.